GBPUSD MARKET ANALYSIS

 Hello traders, here's another setup I am closely watching out for on GBPUSD where market opened this week inside a key H4 & daily supply zone at 1.30750 & 1.30320 which is a previously broken demand zone. Price formed candle closes inside supply followed by a drop by a constant push away from supply. Took sell positions during London session at 1.30400 with SL at 1.30670. Setup taken is a rally base drop, a reversal setup and my target is at 1.28600 above the major daily demand zone at 1.28467 & 1.27980.

Price gained strong bearish momentum dropping 80 pips to the 1st H1 low at 1.29770. Price failed to break the H1 low and instead retraced to 1.30100 forming a lower high before a continuation of the drop lower. Price dropped back to 1.29750 and still showing more bearish potential. Price gained more bearish momentum taking out the previous H1 low at 1.29770 and forming lower lows on H1 & H4 at 1.29550. Price dropped 100 pips to 1.29550 then retraced to 1.29950 to form a lower high before a potential continuation of the drop lower.